Analysis On The Cost Of Vanadium Alloys In June 2020 In June, the market price of ferrovanadium and VN alloy fluctuated greatly, and the market of V2O5 flake was also relatively active. In early June, due to the active procurement of steel mills and strong terminal demand, the prices of downstream steel products increased significantly. In addition to the market speculation, the prices of ferrovanadium and VN alloys rose rapidly. However, due to the lack of marketable goods in the V2O5 flake market, the price increase of V2O5 flake was delayed, During this period, ferrovanadium and VN alloy have a large profit margin.

Near the middle of June, as the price of V2O5 flake increased, the profit space of vanadium alloy gradually shrinks. At that time, the price of large V2O5 flake factories was 107,000 yuan / ton by acceptance with tax, 5000-6000 yuan/ton lower than the price of V2O5 flake in retail market, thus the cost pressure of ferrovanadium and VN alloy manufacturers was relaxed. However, with the advent of high temperature and rainy weather in the middle and late ten days of June, the demand for alloy was weakened, and the price of ferrovanadium and VN alloy was reduced. Although the market price of V2O5 flakes also followed the correction, the decline rate was not as fast as that of the alloys.
At the end of June, the large V2O5 flake factories said that their prices in July remained unchanged at 107,000 yuan/ton by acceptance with tax, which in a sense built the bottom for the alloy cost of the next month. It is expected that the alloy cost line in July will be relatively stable, but the cost is still under heavy pressure compared with the current alloy price. In terms of terminal demand, the impact of high-temperature and rainy season in July is expected to be difficult to dissipate, thus the alloy demand is expected to be weak, and the alloy price is difficult to rise. It is expected that vanadium alloy manufacturers will face high cost pressure in July.